Jason Company Determined That the Budgeted Cost of Producing a Product

question 117

Multiple Choice

Jason Company determined that the budgeted cost of producing a product is $1.20 per unit.On June 1, there were 11,000 units on hand.The sales department budgeted sales of 320,000 units in June.The company desires to have 8,000 units on hand on June 30.How much is the budgeted cost of goods manufactured for June?

• A)$380,400
• B)$317,000
• C)$323,000
• D)$387,600

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Definitions:

Sales On Account

Transactions where goods are sold and payment is deferred, allowing the buyer to pay at a later date, typically generating accounts receivable for the seller.

Average Sale Period

The average time it takes for a company to sell its inventory, often used to assess the efficiency of sales operations.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting its financial performance and position over a defined period.

Current Ratio

A financial metric indicating a firm's capability to settle short-term debts, determined by dividing its current assets by its current liabilities.